Roller Coaster Rides in Markets as Russia Invades Ukraine
Action Insight Weekly Report 2-26-22
Roller Coaster Rides in Markets as Russia Invades Ukraine

The markets had a roller coaster ride on Russia's invasion of Ukraine last week. At the time of writing, Kyiv remains in Ukrainian hands after three days of brutal attack by Russia. Wave of European leaders have start delivering supplies Ukraine while packages of sanctions were imposed, up to Russian President Vladmir Putin. It's also reported that cutting of Russia from SWIFT payment system would be taken in a matter of days.

Global stocks took a strong U-turn after initial dive during the week. But risks will remain on the downside for the near term at least. Gold and oil prices spiked higher but quickly retreated. More upside is still in favor in both risk sentiment commodity. In the currency markets, Aussie and Kiwi ended as the strongest ones for the week, followed by Canadian. European majors were also hammed, with Sterling as the worst. Dollar and Yen just ended mixed.

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GBP/JPY Weekly Outlook

GBP/JPY dropped sharply to 153.34 last week but recovered. Initial bias is neutral this week first. But further decline is expected with 155.48 resistance intact. Fall from 158.04 is seen as the third leg of the corrective pattern from 158.19. Break of 152.88 will target 148.94 support next. However, firm break of 155.48 will dampen this view and turn bias back to the upside for 158.04 resistance instead.

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EURUSD | USDJPY | GBPUSD | USDCHF | AUDUSD | USDCAD

EURJPY | EURGBP | EURCHF | EURAUD | GBPJPY

Recommended Readings

Weekly Economic & Financial Commentary: Some Economic Implications of the War Between Russia and Ukraine

The Weekly Bottom Line: Commodity Prices Rise Ahead of Key BoC Meeting

Bank of Canada Rate Hike Expected Despite Geopolitical Turbulence

Week Ahead: Russia/Ukraine Conflict, OPEC, Central Banks, and NFP

Week Ahead: 28 February 2022

Week Ahead – Shock Waves

Week Ahead – NFP Report, BoC Meeting, Eurozone Inflation Might Detract from Ukraine Turmoil

Weekly Focus – Russia Attack on Ukraine Hits Risk Sentiment

 

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